In many of today's data centers, servers are shared across multiple applications. However, current tools for allocating servers or server partitions to applications typically rely on offline capacity planning and performing a static partitioning of system resources to support these co-hosted applications. For example, each application is allocated a maximum entitlement of system resources for execution over the application's lifetime. Many times, the amount of the maximum entitlement of system resources is either based on anticipated peak load or demand profiles computed from historic data and performance models. However, the entitlement of system resources is static. For example, the entitlement of system resources is determined and used for a long period of time before being re-evaluated. This static entitlement typically results in poor utilization of system resources, which in many instances is below 20%, and does not take full advantage of demands that vary over time due to changes in operating conditions and user demands. In addition, this static entitlement cannot respond to unexpected spikes in demands therefore resulting in performance degradation or violation of service level objectives of the hosted applications.